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1
Uncles, Mark D., Grahame R. Dowling, and Kathy Hammond. "Customer loyalty and customer loyalty programs." Journal of Consumer Marketing 20, no. 4 (July 1, 2003): 294–316. http://dx.doi.org/10.1108/07363760310483676.
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Customer loyalty presents a paradox. Many see it as primarily an attitude‐based phenomenon that can be influenced significantly by customer relationship management initiatives such as the increasingly popular loyalty and affinity programs. However, empirical research shows that loyalty in competitive repeat‐purchase markets is shaped more by the passive acceptance of brands than by strongly‐held attitudes about them. From this perspective, the demand‐enhancing potential of loyalty programs is more limited than might be hoped. Reviews three different perspectives on loyalty, and relates these to a framework for understanding customer loyalty that encompasses customer brand commitment, customer brand acceptance and customer brand buying. Uses this framework to analyze the demand‐side potential of loyalty programs. Discusses where these programs might work and where they are unlikely to succeed on any large scale. Provides a checklist for marketers.
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Vatsa, Vidushi, Bhawna Agarwal, and Ruchika Gupta. "Unlocking the potential of loyalty programs in reference to customer experience with digital wallets." Innovative Marketing 19, no. 1 (March 30, 2023): 233–42. http://dx.doi.org/10.21511/im.19(1).2023.20.
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The emergence of digital technology has fundamentally transformed how businesses generate value for their customers. One of the critical components of this paradigm shift in digital transformation is improving customer experience, which benefits both consumers and organizations. This study aims to evaluate customer experience and its influence on customer satisfaction and loyalty in the digital wallet domain. It also analyzes the moderating role of loyalty programs. This study was conducted in the Indian context since, alongside advancements in technology and a focus on digitalization, there has been a substantial increase in the acceptance of cashless payment options. The data from 349 respondents using the snowball sampling technique were collected through Google Forms, and SmartPLS 4.0 was used for analysis.The results showed that loyalty and satisfaction are significantly influenced in the digital wallet domain if organizations work on factors affecting customer experience. The results also proved that loyalty programs moderate the relationship between customer experience and customer satisfaction.This analysis successfully unlocked the potential of loyalty programs and established that loyalty programs do not moderate customer loyalty. However, organizations must note that poorly designed loyalty programs are just like any other sale promotion scheme, which adds up to the promotional expense without achieving the overall long-term objective of sustaining loyal consumers.
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Ramaseshan, B., and Robyn Ouschan. "Investigating status demotion in hierarchical loyalty programs." Journal of Services Marketing 31, no. 6 (September 11, 2017): 650–61. http://dx.doi.org/10.1108/jsm-11-2016-0377.
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Purpose The purpose of this paper is to extend research on customer loyalty status and customer demotion by investigating if the effect of demotion on customer attitudinal and behavioral responses is the same for top-tier and low-tier customers in the context of airlines. Design/methodology/approach A survey was conducted with travelers intercepted at large airport terminals in Australia. Multivariate analyses examined group differences across status change (no change vs demoted) and status level (high status vs low status). Multi-group moderation structural equation modeling (SEM) analysis tested the moderating role of status (high status vs low status) on the effects of demotion on the relationship between customers’ attitudes and loyalty intention, and between loyalty intention and share of wallet. Findings This study shows that the detrimental effects of demotion on the relationship between customer satisfaction/commitment/perceived betrayal on loyalty intentions, and on the relationship between loyalty intentions and share of wallet are stronger for “high status” than “low status” customers. Research limitations/implications A cross-sectional design was employed to investigate customer demotion in the airline industry. Future studies could investigate different types of demotions in other industries by employing a longitudinal design. Practical implications The study provides new insight about the effects of status demotion and highlights that service firms could be jeopardizing the loyalty of numerous valuable customers, especially among the “high status” customer group. Originality/value This study reveals loyalty status moderates the effect of demotion on customer attitudinal responses and loyalty behaviors. It draws on social identity, social comparison, emotion and equity theories to explain the different effects of demotion on customers from different status level groups.
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Kwiatek, Piotr, Vladimir Dženopoljac, and Abdul Rauf. "Loyalty program value: Give me more or treat me better?" Menadzment u hotelijerstvu i turizmu 9, no. 2 (2021): 11–23. http://dx.doi.org/10.5937/menhottur2102011k.
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Customer loyalty programs are frequently used by companies to establish and improve relationships with customers by providing them with rewards. Loyalty programs investigated in the literature focus mainly on tangible rewards and economic benefits offered to the customers. However, some research done on intangible rewards of loyalty programs suggest that they can be superior to tangible benefits in affecting customer loyalty. Previous research drew conclusions in industry-specific settings. The aim of the paper is to assess the impact of tangible and intangible benefits on customer loyalty using an on-line customer panel representing different industries. The data collected from over 300 customers is subjected to CFA/SEM analysis in R environment. The main contribution of the present study is that it represents the first attempt (to the best of authors" knowledge) to capture loyalty programs" tangible and intangible value in an Arab cultural context, given the fact the focus was on the participants from the United Arab Emirates. Several important dimensions of LP programs in an Arab country are revealed. Firstly, the study confirmed that social value of a loyalty program significantly impacts customer loyalty. In addition, it was confirmed that the flexibility of a loyalty program increased customer loyalty. Ultimately, it was established that customers value intangible benefits more than the tangible ones.
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Wagner, Tillmann, Thorsten Hennig-Thurau, and Thomas Rudolph. "Does Customer Demotion Jeopardize Loyalty?" Journal of Marketing 73, no. 3 (May 2009): 69–85. http://dx.doi.org/10.1509/jmkg.73.3.069.
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Hierarchical loyalty programs award elevated customer status (e.g., “elite membership”) to consumers who meet a predefined spending level. However, if a customer subsequently falls short of the required spending level, firms commonly revoke that status. The authors investigate the impact of such customer demotion on loyalty intentions toward the firm. Building on prospect theory and emotions theory, the authors hypothesize that changes in customer status have an asymmetric negative effect, such that the negative impact of customer demotion is stronger than the positive impact of status increases. An experimental scenario study provides evidence that loyalty intentions are indeed lower for demoted customers than for those who have never been awarded a preferred status, meaning that hierarchical loyalty programs can drive otherwise loyal customers away from a firm. A field study using proprietary sales data from a different industry context demonstrates the robustness of the negative impact of customer demotion. The authors test the extent to which design variables of hierarchical loyalty programs may attenuate the negative consequences of status demotions with a second experimental scenario study and present an analytical model that links status demotion to customer equity to aid managerial decision making.
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Hofman-Kohlmeyer, Magdalena. "CUSTOMER LOYALTY PROGRAM AS A TOOL OF CUSTOMER RETENTION: LITERATURE REVIEW." CBU International Conference Proceedings 4 (September 21, 2016): 199–203. http://dx.doi.org/10.12955/cbup.v4.762.
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Customer loyalty is a highly valuable asset. To gain loyalty of current customers and create attachments, the growing ranks of entrepreneurs decide on implementation of loyalty programs. This article aims at providing a theoretical outlook on various approaches on loyalty programs derived from literature review and identifing the factors which lead to success of a company. The literature review offers some directives for managers which are useful in the preparation of rewarding programs and are also a source of valuable customer information that helps in building future marketing strategies. We concluded that loyalty programs impact customers using financial and psychological factors to maintain long-term loyalty. Furthermore, loyalty programs should include financial as well as affective components as only financial incentives don’t guarantee a long-term relationship.
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Myftaraj, Ervin, and Brunela Trebicka. "Analyzing the impact of loyalty card programs on customer behavior: insights from the Albanian market." F1000Research 12 (August 23, 2023): 1028. http://dx.doi.org/10.12688/f1000research.138185.1.
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Background: Loyalty card programs have become prevalent in the retail industry, offering various benefits and rewards to customers. This study aims to analyze the impact of loyalty card programs on customer behavior in the Albanian market. Methods: A survey was conducted among a diverse sample of customers from different retail sectors in Albania. The survey collected data on awareness, satisfaction, loyalty, and customized benefits. The survey was distributed between March and May 2023, and responses were collected electronically. The survey responses were analyzed to address the research questions and test the hypotheses. Results: The findings indicate a significant level of awareness among respondents regarding loyalty card programs. Higher satisfaction with specific benefits, such as discounts and accumulating points, is associated with higher levels of customer loyalty. Customers who reported higher frequencies of loyalty card usage demonstrated greater loyalty. Customized benefits, particularly discounts and accumulating points, significantly influenced customer satisfaction. However, other benefit categories did not show statistically significant associations with loyalty. Conclusion: The study highlights the importance of promoting loyalty card programs to enhance awareness among customers. Improving and optimizing loyalty card benefits based on customer feedback is recommended. Encouraging frequent usage of loyalty cards and personalizing benefits to align with customer preferences are key strategies to foster customer loyalty. The findings provide valuable insights for practitioners in the retail sector to enhance customer engagement, satisfaction, and loyalty.
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Myftaraj, Ervin, and Brunela Trebicka. "Analyzing the impact of loyalty card programs on customer behavior: insights from the Albanian market." F1000Research 12 (October 16, 2023): 1028. http://dx.doi.org/10.12688/f1000research.138185.2.
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Background: Loyalty card programs have become prevalent in the retail industry, offering various benefits and rewards to customers. This study aims to analyze the impact of loyalty card programs on customer behavior in the Albanian market. Methods: A survey was conducted among a diverse sample of customers from different retail sectors in Albania. The survey collected data on awareness, satisfaction, loyalty, and customized benefits. The survey was distributed between March and May 2023, and responses were collected electronically. The survey responses were analyzed to address the research questions and test the hypotheses. Results: The findings indicate a significant level of awareness among respondents regarding loyalty card programs. Higher satisfaction with specific benefits, such as discounts and accumulating points, is associated with higher levels of customer loyalty. Customers who reported higher frequencies of loyalty card usage demonstrated greater loyalty. Customized benefits, particularly discounts and accumulating points, significantly influenced customer satisfaction. However, other benefit categories did not show statistically significant associations with loyalty. Conclusion: The study highlights the importance of promoting loyalty card programs to enhance awareness among customers. Improving and optimizing loyalty card benefits based on customer feedback is recommended. Encouraging frequent usage of loyalty cards and personalizing benefits to align with customer preferences are key strategies to foster customer loyalty. The findings provide valuable insights for practitioners in the retail sector to enhance customer engagement, satisfaction, and loyalty.
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Myftaraj, Ervin, and Brunela Trebicka. "Analyzing the impact of loyalty card programs on customer behavior: insights from the Albanian market." F1000Research 12 (November 21, 2023): 1028. http://dx.doi.org/10.12688/f1000research.138185.3.
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Background Loyalty card programs have become prevalent in the retail industry, offering various benefits and rewards to customers. This study aims to analyze the impact of loyalty card programs on customer behavior in the Albanian market. Methods A survey was conducted among a diverse sample of customers from different retail sectors in Albania. The survey collected data on awareness, satisfaction, loyalty, and customized benefits. The survey was distributed between March and May 2023, and responses were collected electronically. The survey responses were analyzed to address the research questions and test the hypotheses. Results The findings indicate a significant level of awareness among respondents regarding loyalty card programs. Higher satisfaction with specific benefits, such as discounts and accumulating points, is associated with higher levels of customer loyalty. Customers who reported higher frequencies of loyalty card usage demonstrated greater loyalty. Customized benefits, particularly discounts and accumulating points, significantly influenced customer satisfaction. However, other benefit categories did not show statistically significant associations with loyalty. Conclusion The study highlights the importance of promoting loyalty card programs to enhance awareness among customers. Improving and optimizing loyalty card benefits based on customer feedback is recommended. Encouraging frequent usage of loyalty cards and personalizing benefits to align with customer preferences are key strategies to foster customer loyalty. The findings provide valuable insights for practitioners in the retail sector to enhance customer engagement, satisfaction, and loyalty.
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Mrkosová, Klára, Ondřej Dufek, and Luděk Majer. "Loyalty programs as a part of company’s marketing strategy." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, no. 2 (2011): 199–204. http://dx.doi.org/10.11118/actaun201159020199.
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This paper aims to characterize the current status of using customer loyalty programs in the Czech Republic. Customer loyalty programs are evaluated as a part of marketing communication, where especially customer cards have a specific role in communication mix of selected companies. Furthermore, customer loyalty programs are evaluated from the perspective of internal marketing system company, as an invaluable source of data about customers. Obtained data are used for decisions on segmentation, targeting and overall marketing strategy. Customer loyalty programs in the Czech Republic are also examined from the perspective of consumers – factors that influence consumer involvement in these programs are evaluated. The paper also shows the results of desk research about personal information provided by consumers to engage in customer loyalty programs.
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Kraljević, Radojka, Zrinka Filipović, and Milanka Zuber. "Customer Satisfaction with the Loyalty Programs in Retail." Acta Economica Et Turistica 3, no. 2 (December 1, 2017): 147–59. http://dx.doi.org/10.1515/aet-2017-0015.
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AbstractThe loyalty programs are often part of a comprehensive strategy for customer relationship and provide a good way to identify and maintain customers with greater value than others. The main objective of this paper is to show the role of loyalty programs affecting customer satisfaction in retail. The purpose of the empirical research was to discover the effects of loyalty programs on customer satisfaction. Research has shown (N= 53) that the loyalty program is not the determinating factor. All other examined factors such as product range, price, locationof the store and customers relationship proved to be the more relevant for consumer satisfaction.
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Pratiwi, Lia Yudar. "Analisis Pengaruh Bauran Pemasaran, Loyalty Program, Intentions to Switch Terhadap Kepuasan Pelanggan dan Implikasinya Pada Loyalitas Pelanggan PT. Bank Negara Indonesia 46 Merauke." Jurnal Penelitian dan Pendidikan IPS 13, no. 1 (September 21, 2020): 22–31. http://dx.doi.org/10.21067/jppi.v13i1.4752.
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This study aims to analyze the effect of marketing mix on customer loyalty, analyze the effect of loyalty programs on customer loyalty, analyze the effect of intentions to switch on customer loyalty, analyze the effect of customer satisfaction on customer loyalty, analyze the effect of marketing mix on customer loyalty through customer satisfaction and analyze the effect loyalty program to customer loyalty through customer satisfaction PT. Bank Negara Indonesia 46 Merauke. The sample in this study was 76 customers. The analysis technique uses path analysis. The marketing mix has a significant positive effect on customer loyalty. The loyalty program has a significant positive effect on customer loyalty. Intentions to switch has a significant negative effect on customer loyalty. Customer satisfaction has a significant positive effect on customer loyalty. The marketing mix does not have a significant effect on customer loyalty through customer satisfaction. Loyalty programs do not significantly influence customer loyalty through customer satisfaction. Intentions to switch affect customer loyalty through customer satisfaction PT. Bank Negara Indonesia 46 Merauke.
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Kaur, Harsandaldeep. "The Impact of Loyalty Programs on Customer Retention in the Retail Industry." Darpan International Research Analysis 12, no. 3 (July 16, 2024): 69–82. http://dx.doi.org/10.36676/dira.v12.i3.57.
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This study investigates the impact of loyalty programs on customer retention within the retail industry, focusing on how these programs enhance customer loyalty and influence purchasing behaviors. “Utilizing a mixed-methods approach, the research combines quantitative surveys and qualitative interviews to provide a comprehensive analysis. The primary objectives are to identify the types of loyalty programs used in retail, assess their effectiveness in retaining customers, and explore the psychological mechanisms that underpin customer loyalty. The hypothesis posits that well-designed loyalty programs significantly improve customer retention by increasing satisfaction and fostering repeat purchases. The findings reveal that loyalty programs, particularly those offering personalized rewards and tiered benefits, effectively boost customer retention by creating a sense of value and emotional connection with the brand. Additionally, the study highlights the importance of using customer data to tailor loyalty initiatives, which enhances the shopping experience and strengthens customer relationships. The research contributes to both academic literature and practical applications, offering valuable insights for retail managers aiming to optimize their loyalty strategies. By demonstrating the positive impact of loyalty programs on customer retention, this study underscores the critical role these programs play in achieving long-term success and competitive advantage in the retail industry.
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ПАНОВ, В. А. "GAMING PRACTICES AS A TOOL TO INCREASE SALES IN GROCERY RETAIL." Экономика и предпринимательство, no. 12(149) (May 21, 2023): 709–12. http://dx.doi.org/10.34925/eip.2022.149.12.137.
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рограммы лояльности в продуктовых магазинах могут положительно повлиять на покупательское поведение клиентов и повысить удержание клиентов. Традиционные программы лояльности тесно связаны с денежным вознаграждением для клиентов и направлены на уже лояльных клиентов. Альтернативным подходом к традиционным программам лояльности является применение в таких программах элементов геймификации, чтобы клиенты тратили больше, а также получали неденежные вознаграждения. Это исследование направлено на выявление влияния геймификации как повышения ценности с целью повышения намерений клиентов участвовать в продуктовой программе лояльности. В ходе исследования было определено, что некоторые клиенты с определенными социально-демографическими характеристиками (такими как молодой возраст, низкий доход и городской регион) имеют больше намерений участвовать в геймифицированных программах лояльности, чем клиенты с другими социально-демографическими параметрами. Loyalty programs in grocery stores can positively impact customer purchasing behavior and increase customer retention. Traditional loyalty programs are closely related to cash rewards for customers and are aimed at already loyal customers. An alternative approach to traditional loyalty programs is to use gamification elements in such programs so that customers spend more and also receive non-monetary rewards. This study aims to identify the impact of gamification as a value-adding tool to increase customer intent to participate in a product loyalty program. The study determined that some customers with certain socio-demographic characteristics (such as young age, low income, and urban area) have more intentions to participate in gamified loyalty programs than customers with other socio-demographic characteristics.
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Mattison Thompson, Frauke, and Sven Tuzovic. "Why organizational loyalty programs cannot prevent switching." Journal of Services Marketing 34, no. 2 (February 10, 2020): 207–22. http://dx.doi.org/10.1108/jsm-10-2019-0387.
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Purpose The purpose of this study is to investigate the extent to which loyalty programs can prevent switching, and how individual level cultural values impact this. Loyalty programs are designed to create switching costs, which reduce customers’ desire to leave. However, in practice, these programs are often misapplied; that is, most companies inadvertently treat all customers as equal. While ample research has examined the role of loyalty reward programs in facilitating customer loyalty, little is known about the extent to which individual-level cultural values moderate customer loyalty measures of trust and affective commitment and how this impacts the effectiveness of loyalty programs; that is, consumers’ intentions to “stick” with the program or to switch. Design/methodology/approach This study uses a quasi-experiment combined with an extensive survey to collect the data. Findings Based on data collected from one industrial country and four emerging countries, the results show that loyalty programs do not universally prevent switching behavior. Instead, this study finds that individual-level uncertainty avoidance and collectivist values significantly moderate the effects. Originality/value This study helps advance the understanding of how international retailers can increase their loyalty program effectiveness and reduce customer switching to competitors.
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Siswi, Ati Arifiah, and Wahyono Wahyono. "The Role of Customer Satisfaction in Increasing Customer Loyalty." Management Analysis Journal 9, no. 1 (March 24, 2020): 17–25. http://dx.doi.org/10.15294/maj.v9i1.34427.
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The purpose of this study is to determine the direct and indirect influence of brand personality, brand reputation and price fairness toward customer loyalty through customer satisfaction as an intervening variable. Customer satisfaction influence customers to make an loyal. The population in this research is customers Kukubima Energi. The total sample in this research is 115 respondents with purposive sampling technique through a likert scale. Methods of collecting data using questionnaires and documentation. Data analysis using classic assumption test and hypothesis test (t test and path analysis) with SPSS Statistics version 21 programs. Based on the hypothesis test, the results show that brand personality has a positive and significant effect on customer loyalty, price fairness has a positive and significant effect on customer loyalty, brand reputation does not has a positive and significant effect on customer loyalty, and customer satisfaction has a positive and significant effect customer satisfaction. Mediation test shows that positive emotion mediates the effect of brand personality, and price fairness on customer satisfaction.
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Zikienė, Kristina, Asta Kyguolienė, and Justinas Kisieliauskas. "THE INFLUENCE OF CREATIVE AND INNOVATIVE LOYALTY PROGRAMS’ FEATURES ON CUSTOMERS’ ATTITUDINAL, CONATIVE, AND BEHAVIOURAL LOYALTY." Creativity Studies 17, no. 1 (May 2, 2024): 254–73. http://dx.doi.org/10.3846/cs.2024.20130.
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Companies allocate significant resources in loyalty programs with the primary goal of enhancing customer loyalty. However, the effectiveness of these programs is now a subject of academic debate. Scholars highlight concerns such as the creation of spurious loyalty, the need for perceived value, and evolving consumer expectations. To succeed in this changing landscape, companies must embrace creativity and innovation in their loyalty program design. As creativity and innovations in loyalty programs are new and little-studied phenomenon, a comprehensive assessment of potential creative and innovative features in loyalty programs is essential for a deeper understanding of their influence on customer loyalty. The aim of this study was to measure the influence of creative and innovative loyalty programs’ features on customers’ attitudinal, conative, and behavioural loyalty. 203 respondents took part in the research. Ordered logistic regression analysis was used to reach the aim of the study. The research findings indicate that engagement-, gamification-, personalization-, and experience-based loyalty programs have an influence on customer loyalty. All four types of features of creative and innovative loyalty programs influence attitudinal and behaviour loyalty, and three types of features of loyalty programs, i.e., engagement-, gamification-, and experience-based, influence conative loyalty. The study findings underscore the importance of designing new features of loyalty programs that align with specific loyalty dimensions, as they can have differential effects on attitudinal, conative, and behavioural aspects of customer loyalty. Such insights are valuable for companies seeking to enhance customer loyalty through creative and innovative loyalty program design and implementation.
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Sandada, Maxwell, and Bright Matibiri. "An Investigation into the Impact of Service Quality, Frequent Flier Programs and Safety Perception on Satisfaction and Customer Loyalty in the Airline Industry in Southern Africa." South East European Journal of Economics and Business 11, no. 1 (April 1, 2016): 41–53. http://dx.doi.org/10.1515/jeb-2016-0006.
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Abstract This study aims to identify the factors that make passengers loyal to an airline in Southern Africa by investigating the impact of service quality and safety perception on customer satisfaction and how satisfaction and frequent flyer programs (FFP) subsequently influence customer loyalty. The key finding was that service quality positively influenced customer satisfaction, and satisfaction was an important antecedent of customer loyalty. The analysis also suggested that safety perception and FFP positively influence customer loyalty, while their relationship with satisfaction was not significant. An analysis of switching behaviour revealed that satisfied customers may still switch to other airlines. The main contribution of this study is the development of a customer loyalty model for the aviation industry in Southern Africa. Knowledge of customer loyalty drivers will assist airline marketing managers in developing strategies for improving passenger load factors and profitability.
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Bowen, John T., and Shiang-Lih Chen McCain. "Transitioning loyalty programs." International Journal of Contemporary Hospitality Management 27, no. 3 (April 13, 2015): 415–30. http://dx.doi.org/10.1108/ijchm-07-2014-0368.
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Purpose – The purpose of this study is to reflect on Bowen and Chen’s study and provide insight for researchers to help them build loyalty models that will fit the consumer behavior of Millennials and managers as they build customer loyalty with Millennials. In 2001, Bowen and Chen developed and implemented a research framework for hotel managers to identify attributes that will increase customer loyalty. Since 2001, a major shift has taken place: demographically, as Baby Boomers retire and pass on, Millennials will become the dominant generational segment. Design/methodology/approach – The authors use a review of literature to accomplish its purpose. Findings – The authors argue that the loyalty models developed for Boomers will not be a good fit for Millennials. Three propositions are presented in the paper to help researchers develop models that will explain the customer loyalty of Millennials. Research limitations/implications – Implications are presented for researchers wishing to investigate the antecedents and consequences of loyalty for Millennials. Practical implications – The transition from Boomers to Millennials creates a number of opportunities and challenges for managers, which are discussed in the paper. Originality/value – There has been a dearth of empirical research on customer loyalty models developed for Millennials. This paper is a commentary on past models developed for Boomers and the transition needed to develop models for Millennials. It is hoped this dialogue will spawn research that develops loyalty models for Millennials.
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Bade, Kranti. "Customer Loyalty Program: Enhanced Rewards and Insights for Lasting Engagement." International Journal for Research in Applied Science and Engineering Technology 12, no. 4 (April 30, 2024): 84–87. http://dx.doi.org/10.22214/ijraset.2024.59689.
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Abstract: Customer loyalty programs are strategic initiatives designed to cultivate and maintain strong relationships between businesses and their customers. These programs offer incentives and rewards to encourage repeat purchases and foster brand allegiance. By leveraging various techniques such as points systems, tiered memberships, or exclusive perks, companies aim to enhance customer satisfaction and retention. Effective loyalty programs not only drive revenue but also provide valuable data insights into consumer behaviour and preferences. In today's competitive landscape, cultivating customer loyalty is paramount for sustained success, and loyalty programs serve as powerful tools in building enduring connections with clients.
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Kong, Qing Min, and Xiu Qing Liang. "The Research on Structural Path between Relationship Benefits and Relationship Outcomes in Customer Loyalty Programs: Using Data Mining." Advanced Materials Research 457-458 (January 2012): 1118–21. http://dx.doi.org/10.4028/www.scientific.net/amr.457-458.1118.
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In recent years, more enterprises start to take seriously to customer loyalty programs. However, customer loyalty programs do not generate relationship outcomes as people expect. This paper introduces relationship benefits into the research of customer loyalty programs. Using data mining, this study show that relationship benefits in customer loyalty can generate relationship outcomes which are customer satisfaction with customer loyalty programs and customer loyalty on customer loyalty programs. The findings of this paper are directions for future research and managerial implications.
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Stauss, Bernd, Maxie Schmidt, and Andreas Schoeler. "Customer frustration in loyalty programs." International Journal of Service Industry Management 16, no. 3 (July 2005): 229–52. http://dx.doi.org/10.1108/09564230510601387.
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Ma, Baolong, Xiaofei Li, and Lin Zhang. "The effects of loyalty programs in services – a double-edged sword?" Journal of Services Marketing 32, no. 3 (May 14, 2018): 300–310. http://dx.doi.org/10.1108/jsm-06-2016-0227.
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Purpose This paper aims to demonstrate both the positive and negative effects of loyalty programs. The study proposes a model to demonstrate why and how loyalty program strategies can result in good customer relationships and customer entitlement behaviors. Various configurations of three different loyalty program strategies are analyzed – tangible rewards, preferential treatment and perceived status. Design/methodology/approach The authors’ hypotheses were tested by analyzing the survey data of 152 frequent flyer program members in China through partial least squares-structural equation modeling. Fuzzy-set qualitative comparative analysis (fsQCA) was used to test different configurations of the three loyalty program strategies. Findings A net effects analysis demonstrates that loyalty programs are a double-edged sword. While loyalty programs can improve customer relationships, strategies based on perceived status have a positive relationship to customer entitlement, which may lead customers to expect extraordinary efforts from companies, such as greater discounts and extra privileges. Using fsQCA, the authors determined four sufficient configurations of high level of relationship quality and high level of customer entitlement, which also support their findings. Originality/value First, this study expands the research on loyalty programs by providing an examination of their positive and negative consequences. Second, by proposing the configuration paths that lead to high level of relationship quality and high level of customer entitlement using fsQCA, this research enriches research on the net effects of loyalty programs, providing researchers and practitioners with a more comprehensive understanding of loyalty programs. Third, this research extends the concept of customer entitlement to the context of buyer–seller relationships by introducing perceived status as an important antecedent of customer entitlement and by identifying four sufficient configurations.
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Silalahi, Jojor Marintan, Lizar Alfansi, and Akram Harmoni Wiardi. "The Role of Brand Trust in Determining The Relationship Between Brand Affection and Loyalty Programs on Customer Loyalty." AFEBI Management and Business Review 1, no. 1 (June 14, 2016): 12. http://dx.doi.org/10.47312/ambr.v1i1.27.
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<p>study investigates how brand affection, loyalty programs, and brand trust determine the loyalty in airways industry. We examined the influence of brand trust and brand affection on loyalty in airlines services. The airways companies applied loyalty programs as a trend. The purpose of the loyalty programs is to encourage the loyalty of the customers. The purpose of this study is to analyze the influence of brand affection and loyalty programs on brand trust and loyalty among GarudaMiles members. Primary data were collected through a survey. Data collected by online quistionnaire through social media and resulting 171 processable questionnaire. Data were analysed using confirmatory factor analysis and structural equation modelling. Confirmatory factor analysis within structural equation modeling were carried out to assess adequacy of the measurements and validity of the model. We found that brand affection is not significantly influence customer loyalty; brand affection significantly influence brand trust; and brand trust significantly influence customer loyalty. This result indicate that brand affection has an indirrect effect on loyalty, it’s mediated by brand trust. Loyalty program is not significantly effect brand trust, it has direct effect on loyalty. It’s become clear that only brand trust mediates the relationship of brand affection and loyalty. The customers of the airways companies tend to be loyal because of the loyalty programs applied by the airways companies. These finding add performance effectiveness and long-term relationships with customers in airlines industry to the factors needed to respond to the highly competitive situation at present, which will be even more important with the ASEAN Economic Community in 2015.</p><p><br />Keywords: Brand Affection, Brand Trust, loyalty, Loyalty Program</p>
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Silalahi, Jojor Marintan, Lizar Alfansi, and Akram Harmoni Wiardi. "The Role of Brand Trust in Determining The Relationship Between Brand Affection and Loyalty Programs on Customer Loyalty." AFEBI Management and Business Review 1, no. 01 (March 14, 2017): 12. http://dx.doi.org/10.47312/ambr.v1i01.27.
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<p>study investigates how brand affection, loyalty programs, and brand trust determine the loyalty in airways industry. We examined the influence of brand trust and brand affection on loyalty in airlines services. The airways companies applied loyalty programs as a trend. The purpose of the loyalty programs is to encourage the loyalty of the customers. The purpose of this study is to analyze the influence of brand affection and loyalty programs on brand trust and loyalty among GarudaMiles members. Primary data were collected through a survey. Data collected by online quistionnaire through social media and resulting 171 processable questionnaire. Data were analysed using confirmatory factor analysis and structural equation modelling. Confirmatory factor analysis within structural equation modeling were carried out to assess adequacy of the measurements and validity of the model. We found that brand affection is not significantly influence customer loyalty; brand affection significantly influence brand trust; and brand trust significantly influence customer loyalty. This result indicate that brand affection has an indirrect effect on loyalty, it’s mediated by brand trust. Loyalty program is not significantly effect brand trust, it has direct effect on loyalty. It’s become clear that only brand trust mediates the relationship of brand affection and loyalty. The customers of the airways companies tend to be loyal because of the loyalty programs applied by the airways companies. These finding add performance effectiveness and long-term relationships with customers in airlines industry to the factors needed to respond to the highly competitive situation at present, which will be even more important with the ASEAN Economic Community in 2015.</p><p><br />Keywords: Brand Affection, Brand Trust, loyalty, Loyalty Program</p>
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Ramaseshan, B., Jochen Wirtz, and Dominik Georgi. "The enhanced loyalty drivers of customers acquired through referral reward programs." Journal of Service Management 28, no. 4 (August 21, 2017): 687–706. http://dx.doi.org/10.1108/josm-07-2016-0190.
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Purpose The purpose of this paper is to extend prior research on referral reward programs (RRPs) by examining if and how the mode of customer acquisition (RRP-acquired customers vs non-RRP-acquired new customers) moderates the relationships between customer satisfaction and attitudinal loyalty, perceived switching costs and attitudinal loyalty, and attitudinal loyalty and behavioral loyalty (i.e. recommendations, cross-buying, and total spend). Design/methodology/approach Set in a banking context, this study is the first in an RRP context to link survey data with actual purchase data from a bank’s CRM records. Specifically, the survey captured customers’ satisfaction, perceived switching costs and attitudinal loyalty, whereas the CRM data provided actual loyalty behaviors (cross-buying and total spend). Findings The findings show that the effect of satisfaction on attitudinal loyalty, and the effects of attitudinal loyalty on recommendations, cross-buying, and total spend were stronger for RRP-acquired customers than for non-RRP-acquired new customers. Furthermore, perceived switching costs had a lower effect on attitudinal loyalty for RRP-acquired customers than for non-RRP-acquired new customers. Practical implications The findings offer managers a better understanding of how RRP-acquired customers differ from non-RRP-acquired new customers with regard to their satisfaction, perceived switching costs, and attitudinal and behavioral loyalty, thus enabling effective management of RRPs. Originality/value This is the first empirical study that explores the differences between RRP-acquired customers and non-RRP-acquired new customers with regard to the effects of satisfaction and perceived switching costs on attitudinal loyalty, and the effect of attitudinal loyalty on behavioral loyalty.
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Mandal, Pratap Chandra. "Managing Customer Satisfaction and Customer Loyalty in Organizations." Journal of Business Ecosystems 3, no. 1 (January 1, 2022): 1–16. http://dx.doi.org/10.4018/jbe.314599.
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Companies require managing customer satisfaction and loyalty to achieve growth. The objective of the study is to analyze how companies manage customer satisfaction and loyalty. The methodology adopted is a conceptual analysis of the various aspects of management of customer satisfaction and loyalty in companies. Companies require appreciating the importance of product and service qualities as drivers of customer satisfaction. They should keep track of customer satisfaction levels through effective measures. They require building customer loyalty through various strategies viz. close interactions with customers and development of loyalty programs and brand communities. They should adopt effective initiatives for managing customer satisfaction and loyalty. Academics may suggest better practices for managing and measuring customer satisfaction and loyalty. Practicing managers may adopt the best practices which will enable them to have effective management of customer satisfaction and loyalty and effective measures of customer satisfaction levels and achieve business excellence.
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Ramazanov, A. A., and Sh Aldabergen. "Effectiveness of customer loyalty." Bulletin of "Turan" University, no. 1 (March 31, 2021): 136–44. http://dx.doi.org/10.46914/1562-2959-2021-1-1-136-144.
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This article examines the issues of consumer loyalty, taking into account Kazakhstan's experience in hospitality, examines the loyal programs of well-known hotels in the country, analyzes the research of several authors in the framework of the previous loyal topics. For the hospitality industry, which is currently developing in large volumes, it is important to study customer loyalty and think through the right program. When writing the article, the methods of theoretical analysis and generalization were used. The content, criteria of loyalty are examined theoretically. Sustainable consumer incentive programs are common in Kazakhstan hotels. A well-thought-out marketing policy aimed at retaining and attracting new guests significantly increases the load on the hotel and makes it more attractive for corporate clients. With the introduction of so-called loyalty programs, domestic hotels of the same use foreign experience and their know-how. Currently, the hotel can use the following tools to establish close contact with the customer and meet their needs. To encourage regular guests, it isrecommended that the hotel keep a record of repeated customer requests. To do this, the hotel must develop a special program that constantly stores all information about customers who have rooms. After receiving all the necessary information about the participants of such a program, you can send them to the hotel with special offers for hotels and congratulate them on holidays and anniversaries. Address mail, interactive communication, and personalization of guests must continue from the moment of planning a trip to the hotel and after the client arrives at the hotel. The implementation of research results in practice is the main result of the study. The use of the research results discussed in this article to increase the loyalty of guests in the hotel business of the country is the scientific result of the study.
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Sahin, Hande, Ali Osman Kusakci, and Baboucarr Mbowe. "The effects of frequent flyer programs in the airline industry on customer loyalty." Heritage and Sustainable Development 3, no. 2 (August 14, 2021): 130–47. http://dx.doi.org/10.37868/hsd.v3i2.69.
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Customer Loyalty Programs are one of the handiest tools to raise brand awareness, and secure long-term and strong ties between a brand and existing consumers. Airline companies have been using frequent flyer programs (FFPs) to retain customers with the expectation of increasing passengers’ loyalty levels. The purpose of this study was to examine the significance of FFPs for customer loyalty, which is of great help for customer retention in the civil aviation industry in the sample of passengers flying from the new Istanbul Airport. Furthermore, we questioned the effectiveness of various services and products offered within FFPs for loyalty, which is decomposed into two main components, behavioral, and attitudinal commitment of loyalty. We evaluated the significance of various demographic factors on passengers’ perception of FFPs services and privileges, and customer loyalty. The study confirmed the vital role of FFPs to build up brand loyalty, where profession, duration of the membership to FFPs, and gender are essential factors.
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Listiyana, Listiyana. "Customer Satisfaction at Alfamart Raya Sukodono: a Study on Product Quality and Service Excellence." MANAZHIM 5, no. 2 (August 1, 2023): 712–25. http://dx.doi.org/10.36088/manazhim.v5i2.3411.
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This study aims to determine the service quality, customer loyalty, and price and product quality of Alfamart Raya Sukodono. This study used a qualitative approach with a descriptive research type. The data collection techniques used in this study were interviews and observations. The results of this study are Friendly and responsive service quality provided by Alfamart Raya Sukodono is an important factor in influencing customer loyalty. Good service creates customer trust and comfort, motivating them to remain loyal and shop again at Alfamart Raya Sukodono. High customer loyalty at Alfamart Raya Sukodono results from a combination of several factors such as friendly and responsive service, attractive loyalty programs, and promotional activities. involving customers. then also Alfamart Raya Sukodono managed to offer its customers affordable prices and good product quality. The emphasis on competitive prices and adequate quality attracts customers who are looking for the best value in their shopping experience. By providing quality products at competitive prices, Alfamart Raya Sukodono maintains customer satisfaction and strengthens long-term relationships with them.
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Nikolajenko-Skarbalė, Jelena, and Rasa Viederytė-Žilienė. "Transformations of customer loyalty attitude in marketing: Key components of modern loyalty." Innovative Marketing 19, no. 4 (November 10, 2023): 105–23. http://dx.doi.org/10.21511/im.19(4).2023.09.
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In the marketing landscape, there has been a noticeable shift from the well-established “customer retention” loyalty programs of the 2010s to the emerging trend of “customer attraction” programs in the 2020s. This study aims to investigate the underlying reasons behind these transformations and identify the key components shaping a contemporary customer’s loyalty towards brands. To accomplish this, an empirical research was undertaken, interviewing 129 representatives of the “EU-Conexus” network, which education and research institutions are located in Lithuania (i.e., Klaipeda University), Spain (i.e., Catholic University of Valencia), Croatia (i.e., University of Zadar), Romania (i.e., Technical University of Civil Engineering), Greece (i.e., Agricultural University of Athens) and France (i.e., La Rochelle Université). The study employed a quantitative methodology, using a standardised online questionnaire contained multiple-choice, single-choice 18 detailed closed questions. The collected research data were subsequently analysed using MS Excel software through the application of descriptive statistics data processing techniques. The findings of this study revealed that regular and annoying promotional material and “intricate” loyalty programs are usually irritating contemporary customers and can be a reason to leave a brand. Consequently, modern brands are encouraged to regularly rethink – re-evaluate and re-design – their loyalty marketing strategies to become relevant to customers’ needs. The study also highlighted the key components significantly influencing the loyalty of respondents: (i) high quality and responsibly priced goods and (or) services, (ii) well-organised customer service, (iii) a “rational” customer loyalty program, and (iv) an adequate number of promotional messages containing relevant content. Acknowledgment The authors are sincerely thankful to the “EU-Conexus” community for their benevolent and active participation in the research implemented in frames of this study.
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Neneng Yani and Siti Safaria. "The Influence of Service Quality, Business Capacity Development Programs, and Word of Mouth on Customer Satisfaction and Loyalty of Mekaar Permodalan Nasional Madani Customers in Bandung Branch." Formosa Journal of Sustainable Research 2, no. 8 (August 19, 2023): 2011–36. http://dx.doi.org/10.55927/fjsr.v2i8.5356.
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To improve service quality, PNM innovated by launching the Business Capacity Development (PKU) program. PNM also empowers existing customers to attract new prospective customers through Word of Mouth. There are two analysis methods used, namely outer model analysis with Convergent Validity, Discriminant Validity, Composite Reliability, Cronbach's Alpha and using inner model analysis with Hypothesis Test. Outcome from this study are Customer Satisfaction affecting Customer Loyalty. Service positively and insignificant affecting on Customer Loyalty. The PKU program not affecting Customer Loyalty. WOM positively and insignificant affecting on Customer Loyalty. Service quality affecting customer satisfaction. PKU program not affecting customer satisfaction. WOM has a significant positive effect on Customer Satisfaction
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Alzikri, Bapaqih Alzikri. "UPAYA MEMPERTAHANKAN LOYALITAS NASABAH PRODUK DEPOSITO DI BANK MUAMALAT INDONESIA CABANG PANGKALPINANG." El Dinar 6, no. 2 (November 1, 2018): 137. http://dx.doi.org/10.18860/ed.v6i2.5752.
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<em>The background of the selection of this theme is because of the data obtained from the Bank of Muamalat Indonesia, Pangkalpinang Branch on the collection of third party funds (DP3) for the performance of deposit products indicating an increase in funds collected which shows the increasing number of people who are interested in depositing funds through bank deposit products. muamalat, here the question arises in the minds of researchers how to maintain customer loyalty deposit products at the bank Muamalat Indonesia branch of Pangkalpinang. The results of the study through interviews with leaders, head funding, and marketing funding concluded that efforts to maintain customer loyalty for deposit products at Bank Muamalat Indonesia at Pangkalpinang Branch were to give special attention, provide the best service, create mutually beneficial relationships, carry out ongoing follow-up, offer attractive programs for maintain customer loyalty, and give appreciation to loyal customers. While the obstacles faced in the effort to maintain customer loyalty deposit products at the bank Muamalat pangkalpinang branch from the results of interviews with head funding and marketing funding of Muamalat Indonesia Bank, Pangkalpinang Branch are competition between banks, economic conditions, different levels of customer satisfaction, limitations funds for customer maintenance, distance between office and customer, sometimes the bank does not have an active customer telephone number, does not know the customer's residence, and customer dishonesty.</em>
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Berezka, Svetlana. "Loyalty Programs: Foreign and Russian Experience." Moscow University Economics Bulletin 2016, no. 5 (October 30, 2016): 113–31. http://dx.doi.org/10.38050/01300105201657.
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The aim of this paper is to identify the role of the loyalty programs in the Russian market. The methodology of the study based on the analysis of relevant publications and qualitative research using semi-structured interviews with experts in customer relationship and loyalty programs which were fulfilled in 2014–2015 in Russia and Austria. The article offers the definition of customer loyalty programs as relationship marketing tool, and contains the differentiation criteria from the frequency and reward schemes, also the role of customer loyalty programs for retail chains are investigated. The systematization of the reward types that are widely use in loyalty programs are provided. The paper contributes to the development of relationship marketing theory and customer loyalty programs issue.
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Rofiki, Ach, and Nurhayati Nurhayati. "PENGARUH CORPORATE SOCIAL RESPONSIBILITY DAN KUALITAS PELAYANAN TERHADAP LOYALITAS NASABAH MELALUI SIKAP NASABAH (Studi Pada Bank Muamalat KC. Malang)." J-MACC : Journal of Management and Accounting 3, no. 1 (April 30, 2020): 83–96. http://dx.doi.org/10.52166/j-macc.v3i1.1860.
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This study aims to analyze the effect of corporate social responsibility and service quality on customer loyalty with customer attitude as an intervening variable. The data source of this research is primary data from a sample of customers of Bank Muamalat KC. Poor. Data collection was carried out using purposive sampling by distributing to 100 respondents of Bank Muamalat KC customers. Malang that receives CSR assistance or who knows the implementation of CSR programs. Data analysis tool uses SmartPLS. The results of this study indicate that there is a direct influence of CSR on Customer Loyalty and Customer Quality on customer attitudes, and the indirect effect between service quality on customer loyalty through customer attitudes. While CSR has no effect on Customer Attitude and also Service Quality on Customer Loyalty, while Customer Quality has no indirect effect on customer loyalty through customer attitudes.
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Natalia, Natalia, Cooky Tri Adhikara, and Shirley Agusthina. "Analisis Implementasi Customer Relationship Management dan Marketing Public Relations terhadap Nilai Pelanggan dan Dampaknya terhadap Loyalitas Pelanggan: Studi Kasus Grand Tropic Suites’ Hotel." Binus Business Review 3, no. 1 (May 31, 2012): 513. http://dx.doi.org/10.21512/bbr.v3i1.1339.
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The impact of the globalization resulted in the business world being colored by the increase of high competition. Because of that the perpetrators of the business must continue to maintain the continuity of his business and to try to look for the opportunity by making use of the superiority that was owned. One of the methods that could be followed was constructive the customer's loyalty by maintaining the available customer so as they were loyal and did not move to the other competitor. Therefore, it is important for the company to create the value of the superior for the customers. The case study was about Customer Relationship Management program (CRM) and Marketing Public Relations (MPR) that was carried out by Grand Tropic Suites’ Hotel to create the value of the superior of the customers where being expected with this superior value to be able to affect the customer to loyal to the Hotel. The aim of this research was to analyze the implementation of Customer Relationship Management programs (CRM) and Marketing Public Relations (MPR) towards the Perceived Value and it impact towards Customer Loyalty.
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Khairawati, Salihah. "Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty." International Journal of Research in Business and Social Science (2147- 4478) 9, no. 1 (December 30, 2019): 15–23. http://dx.doi.org/10.20525/ijrbs.v9i1.603.
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The aim of this research is to examine the effect of the customer loyalty program on customer satisfaction and its impact on customer loyalty. This program is developed by the company in order to increase customer satisfaction. Optimal customer satisfaction will be able to create customer loyalty. For a company, customer loyalty will guarantee the company’s income to be constantly optimal. The research is conducted using the survey method involving 110 customers and 100 feasible data used. The sampling technique used is judgment sampling and data collected through the questionnaire. It uses SEM in examining hypotheses assisted by software AMOS version 20.0. Member card significantly affects customer satisfaction, while discount promo has no significant effect on customer satisfaction and it also doesn’t affect customer loyalty. Member cards and discount promo have a direct effect on customer loyalty. In general, it can be understood that the customer loyalty program applied by Alfamart either member card or discount promo affects customer satisfaction and has an impact on customer loyalty. This research gives input to retail business managers in managing customer satisfaction through the proper development of customer loyalty programs.
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SYED MAJID KHALIL, OBAID ULLAH, and DR. SYED HAIDER KHALIL. "The Effect of Customer Loyalty Programs on Customer Retention in Pakistan." Journal of Business & Tourism 4, no. 2 (November 7, 2021): 211–25. http://dx.doi.org/10.34260/jbt.v4i2.173.
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The aim of our study was to build an extremely significant understanding of the influence of client's loyalty programs on buyer's retention. The context of the current study was set for Pakistani consumers. The current study inspects the key role of loyalty programs such as devotion programs, point framework, level reward framework and non-fiscal projects on the dependent variable: client retention. A quantitative analysis method was adopted to achieve the objective of the research. For the data collection, questionnaires were distributed randomly among customers. Our findings suggest that there is a significant impact of loyalty programs for retaining valuable customers. Evidently, a significant effect was noted for different types of loyalty schemes such as Tier reward, Point and Non-monetary schemes.
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Basso, Leonardo J., Matthew T. Clements, and Thomas W. Ross. "Moral Hazard and Customer Loyalty Programs." American Economic Journal: Microeconomics 1, no. 1 (January 1, 2009): 101–23. http://dx.doi.org/10.1257/mic.1.1.101.
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Frequent-flier plans (FFPs) may be the most famous of customer loyalty programs, and there are similar schemes in other industries. We present a theory that models FFPs as efforts to exploit the agency relationship between employers (who pay for tickets) and employees (who book travel). FFPs “bribe” employees to book flights at higher prices. While a single airline offering an FFP has an advantage, competing FFPs can result in lower profits for airlines even while ticket prices rise. Thus, in contrast to switching-cost treatments of FFPs, we may observe prices and profits moving in opposite directions. (JEL D82, L93, M31)
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Lesmana, Ceta Indra, Ujianto Ujianto, and Abdul Halik. "effect of corporate branding, islamic corporate social responsibility (ICSR), ethics programs, on customer loyalty through corporate reputation and spiritual experience." International research journal of management, IT and social sciences 9, no. 4 (June 23, 2022): 457–74. http://dx.doi.org/10.21744/irjmis.v9n4.2107.
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This study was structured as an attempt to test several concepts regarding the variables that affect customer loyalty. Significant support was obtained in testing hypothesis 1 up to 10 which strengthen the concept of corporate brand, Islamic corporate social responsibility, corporate reputation, spiritual experience and customer loyalty. The sample is taken as many as 144 respondents using purposive sampling. Data was collected using a survey method through questionnaires filled out by customers. Then the data obtained were analyzed using sem amos version 26. Hypothesis testing in this study resulted in the company's brand having no significant effect on corporate reputation. Icsr has no significant effect on the company's reputation. Ethics program affects corporate reputation. Corporate branding significantly negative effect on spiritual experience. ICSR has no significant effect on spiritual experience. The company's brand has a negative and significant effect on customer loyalty. Icsr affects customer loyalty. Ethics program affects customer loyalty. Corporate reputation has a significant effect on customer loyalty.
Keywords: Corporate Branding, ICSR, Ethics Program, Corporate Reputation, Spiritual Experience, Customer Loyalty
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Dudin, M. N., Y. N. Popovskiy, and N. V. Lyasnikov. "Marketing aspect of development of customer loyalty programs in the context of formation of consumer behavior." Izvestiya MGTU MAMI 9, no. 1-5 (September 10, 2015): 60–66. http://dx.doi.org/10.17816/2074-0530-67035.
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The article discusses theoretical basis for development of customer loyalty programs in commercial enterprises. Foreign experience of development of customer loyalty programs and the effect of customer loyalty programs on the efficiency of enterprises are considered.
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Lee, Seung Min, Sang Yong Kim, and Dong Young Kim. "Effect of program type and reward timing on customer loyalty: The role of the sunk cost effect." Social Behavior and Personality: an international journal 47, no. 11 (November 5, 2019): 1–10. http://dx.doi.org/10.2224/sbp.8407.
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We examined the effect on customer loyalty of the type of loyalty program (paid vs. free) and timing of rewards (immediate vs. delayed). To test the research objectives we recruited 142 Korean college students and used a 2 × 2 full-factorial, randomized experimental design. Results suggested that the membership fee in paid loyalty programs acted as a sunk cost, which, compared to free loyalty programs, led to greater loyalty to the provider. An immediate (vs. delayed) reward was generally preferred; however, owing to the sunk cost effect, this depended to some extent on the type of loyalty program. In a paid loyalty program, immediate rewards were effective in increasing customer loyalty, whereas customers in free loyalty programs focused more on receiving the reward regardless of its timing. Our findings contribute to the literature by providing useful information for the design of an effective loyalty program scheme.
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Trimintarsih, Titin. "Pengaruh Customer Relationship Management (CRM) terhadap Loyalitas Pelanggan Dengan Kepuasan Kerja sebagai Variabel Moderat." REVITALISASI 12, no. 1 (June 21, 2023): 68. http://dx.doi.org/10.32503/revitalisasi.v12i1.3852.
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Relationships with customers is more important than setting sales goals. Customer Relationship Management is one way to satisfy and retain loyal customers, and this method will be applied in research for businessman in Kampung Tahu Kota Kediri. The reason for choosing a location in Kampung Tahu that there are approximately 30 more businessman who have the same product, with the same location, so that the level of competition in Kampung Tahu is very tight and must avoid customer grabs, negative impacts. This research focused on the tofu industry house "Sidodadi" which is also located in the tofu village, by taking 50 samples of customers with 20 questionnaire questions. Using Descriptive quantitative methods with the Application of CRM programs to Customer Loyalty and Job Satisfaction as a Moderate Variable. Calculations using SPSS theory produce an analysis of the R2 squere value of 0.562. CRM was able to explain loyalty by 56.2% and the remaining 43.8% was explained by other variables not studied in this research. As known that the higher the CRM, the higher the customer loyalty. The conclusions of research that the better or more attractive the CRM program applied to the tofu industry, the loyalty from customers will increase.
Keywords : CRM, satisfied, loyalty, moderating
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Clottey, Toyin A., David A. Collier, and Michael Stodnick. "Drivers Of Customer Loyalty In A Retail Store Environment." Journal of Service Science (JSS) 1, no. 1 (July 1, 2008): 35–48. http://dx.doi.org/10.19030/jss.v1i1.4300.
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The determinants of customer loyalty are identified for a large U.S. retailer based on a survey of 972 customers. An ordered logistic regression is used to estimate the proportion of a retailers customers who are willing to recommend the retailers products to others based on survey results.Statistical results document that service quality, product quality and brand image drive customer loyalty as measured by a customers willingness to recommend the retailers products to other people. Service management managers can improve these drivers of customer loyalty by better training, recognition and reward programs, day-to-day store operations, and job, product, process and store design. Given the general research objective of defining a universal model of what drives customer loyalty in a diverse set of industries, this research provides additional statistical evidence to support the theory that brand image, product quality, and service quality determine customer loyalty.
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Rehnen, Lena-Marie, Silke Bartsch, Marina Kull, and Anton Meyer. "Exploring the impact of rewarded social media engagement in loyalty programs." Journal of Service Management 28, no. 2 (April 18, 2017): 305–28. http://dx.doi.org/10.1108/josm-10-2015-0338.
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Purpose New approaches in loyalty programs try to activate membership by rewarding not just financial transactions but also customer engagement. The purpose of this paper is to analyze the effect of rewarded customer engagement on loyalty intentions and behavior by applying a social media context. Design/methodology/approach A field study in the mobility service industry (focus groups (n=18) and questionnaire (n=1,246)) and a laboratory experiment (n=141, 2 (rewarded engagement and transaction/rewarded transaction)×2 (low/high reward) between subjects design) were conducted to determine the effect of rewarded engagement on loyalty. Findings In the field study, the participants could gather loyalty points through their social media engagement. Their attitudinal loyalty to the loyalty program and the company was significantly higher than that of the loyalty members who collected points solely through transactions. This effect is especially prevalent with respect to engagements rewarded with monetary incentives and is underlined by behavioral data. The results of the laboratory experiment show that rewarded engagement positively moderates the impact of intrinsic motivation on loyalty intentions. Offering rewarded engagement in loyalty programs offsets the undermining effect of rewards. Practical implications Rewarding customers for social media engagement can be a beneficial way of boosting active participation in loyalty programs, but this experience should be enjoyable and self-determined. Originality/value The study is the first to show the impact of rewarded customer engagement on the attitudinal and behavioral loyalty of members of a loyalty program.
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Berlianto, Margaretha Pink. "Identifying Antecedents and Consequences of Customer Satisfaction in the Full-Service Airline Industry." Jurnal Manajemen 23, no. 3 (September 27, 2019): 496. http://dx.doi.org/10.24912/jm.v23i3.586.
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This study aims to investigate the effect of brand image, perceived value, and loyalty programs on satisfaction and the effect of satisfaction with customer advocacy on Garuda Indonesia airways customers. The population of this study was individuals who had used Garuda Indonesia airways by distributing questionnaires as many as 200 samples. The sampling technique used was purposive sampling. Data analysis using PLS-SEM. The results of this study indicate that brand image, perceived value, and loyalty programs have a positive effect on satisfaction and satisfaction have a positive effect on customer advocacy. This research has succeeded in contributing to the airline industry regarding the importance of increasing band image, perceived value and organizing loyalty programs and also forming customer advocacy.
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Tandiono, Josephine, and Anna Amalyah Agus. "Analysis of Factors that Influence the Customer Loyalty in Modern Pharmacy Retail in Indonesia." Jurnal Samudra Ekonomi dan Bisnis 15, no. 1 (December 31, 2023): 117–29. http://dx.doi.org/10.33059/jseb.v15i1.8036.
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The study analyzes several factors that are seen to influence the customers loyalty in modern pharmacy retail. This study was conducted at Watsons Indonesia. This study examines the influence of in-store experience (IE), membership programs (M), and use of private labels (PL) on customer loyalty. Shopping habits are proposed as a variable that moderates the three independent variables on customer loyalty. Data was collected from a sample of 232 Watsons Indonesia customers and the relationship between variables was tested using structural equation models. The findings show that IE and M are not proven to have a significant influence, but PL is proven to have a significant influence on customer loyalty at Watsons Indonesia. Furthermore, shopping habits do not significantly moderate EI, PL, and M in building customer loyalty of the company.
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Güzel, Ramazan, Kutay Oktay, and Ultugan Orynbaeva. "Guest Loyalty Programs of Chain Hotels: The Case of Turkey." Eurasian Journal of Economic and Business Studies 2, no. 67 (June 30, 2023): 69–78. http://dx.doi.org/10.47703/ejebs.v2i67.191.
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The increasing competition among companies has forced them to adopt new marketing methods and develop new strategies to retain customers. One such strategy is the use of loyalty program cards, which were initially used as a benefits program but have now become a popular marketing strategy used by many hotel chains in Turkey. Loyalty programs are designed to encourage customers to continue using a company's services or products by offering rewards, discounts, and other privileged services. This study aims to conduct a content analysis of the websites of 10 hotels in Turkey to explore the facilities these hotels offer through their loyalty programs. The content analysis focuses on the services offered by these hotels, which are designed to retain customer loyalty. The data was collected by visiting the websites of the selected hotels and analyzing the content using the content analysis method. The findings were presented descriptively, highlighting the similarities and differences between the services offered by the hotels under the name of the loyalty program. The study found that the loyalty programs offered by hotel chains in Turkey have both common and different characteristics. Overall, this study provides valuable insights into the loyalty programs offered by international hotel chains in Turkey. By analyzing the content of the websites, the study highlights the key facilities offered by these hotels to retain customer loyalty. The findings of this study could be useful to hotel managers and marketers in designing effective loyalty programs that meet the needs and expectations of their customers.
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Boevsky, Ivan. "The cooperative – a pioneer in the loyalty programs’ using." Scientific Works LXIII, no. 1 (January 28, 2022): 34–45. http://dx.doi.org/10.22620/sciworks.2021.01.004.
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Customer-focused organizations, regardless of their type and size, use customer loyalty programs extremely intensively as a modern marketing and management tool. In the paper, I am looking for an answer to the question: Are customer loyalty programs so new and modern, or do their roots go deep into human business history? The comparison between the ideal-theoretical DNA elements of the customer loyalty program with the ideal-theoretical DNA elements of the cooperative, formulated when it was established in 1844. unequivocally shows that the DNA of the customer loyalty program is part of the DNA code of the cooperative. Therefore, customer loyalty programs have been deeply rooted and used by the cooperative for more than 150 years and for it they are neither a new phenomenon nor a modern phenomenon, much less a modern marketing and management tool.
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Chang, Woo jung, and Bo Reum Choi. "Customers’ Differential Response to Customer Demotion in Hierarchical Loyalty Programs." Academy of Customer Satisfaction Management 20, no. 1 (April 30, 2018): 85–106. http://dx.doi.org/10.34183/kcsma.20.1.5.
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